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Sold second AAPL bull call spread for 158% profit

As I mentioned yesterday in my Apple post I had another bull call spread against AAPL with expiration next week. I closed the first one on Thursday to avoid partial assignment for a great profit of 236%. Today I closed the second trade for another great profit of 158.77%.

This second trade wasn’t as easy as the first one and I had to roll it more often. I was right with the stock move, I wasn’t right with time.

Originally, I opened this trade in November 2014 with December expiration and these strikes:

STO 1 AAPL December 19 2014 125 Call
BTO 1 AAPL December 19 2014 120 Call

The stock didn’t grow up as I anticipated and as actually happened with the first trade too, so I had to roll the trade to give it more time to work. I had to roll this trade twice during its life span. The last rolling I had to lower and widen the spread in order to keep it profitable. See my trade tracking spreadsheet what I did with it:

AAPL trading book

Today morning the SPX market stalled for almost the entire morning. At the opening it fell hard, later recovered, but continued sideways until about 10:30 AM. I decided to take the profit rather than waiting until next week and risk that AAPL may reverse and start going back down.

Although I could make $493 if I waited until next week I thought it could be better to take the profit earlier rather than waiting and risk the entire profit of $371 already made. Another reason for bailing out earlier was that Apple had a nice run up for a while and the odds of a pullback increased significantly.

AAPL trend

One thing I learned about debit spreads. They may be better profitable than debit spread, their risk reward ratio may be better, but managing debit spreads is really harder if they go against you.

And I think, 158% profit is still quite good, don’t you think?
 





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